The feasibility study for the JKIA-Adani deal was conducted and completed within a shocking fourteen days, with unnamed powerful forces in the government pushing it through.
According to Kisii Senator Richard Onyonka, the board of the Kenya Airports Authority (KAA) had raised concerns that powerful individuals in the government who had a huge interest in the JKIA-Adani deal were forcing the takeover through.
The Senator states that members of the KAA board had questioned how two weeks could be enough for a feasibility study of such a magnitude.
He made these revelations when he the Cabinet Secretary for Transport Davis Chirchir appeared for questioning before the Senate Roads and Transportation Committee.
JKIA makes Sh. 19 billion revenue in twelve months
“Individuals were sitting and telling us that our airport, which is worth Sh. 1.2 trillion shillings, can actually be given somebody at Sh. 136 billion for a period of 35 years, or whatever it is. Did it occur to you waziri (Cabinet Secretary) that people in government have an interest in this deal,” Senator Onyonka stated.
These revelations come hot on the heels of claims by CS Chirchir that Adani will borrow 70 per cent of the funds needed to carry out the renovations at the JKIA.
“Investing own money from own sources is expensive. On the other hand, debt is cheap. Since equity is expensive, the ration of equity to debt is 3 to 7 or 30 per cent to 70 per cent,” he said.
CS Chirchir has however been unable to explain where Adani will get this money from, and instead claimed that the Indian firm might borrow the money banks with a support letter from the government of Kenya.
“It’s a complex transaction. It will be a couple of banks because we are not looking for equity,” he said.
The proposed takeover of the JKIA has been shrouded in secrecy and controversy, and was only revealed to the public after a whistleblower leaked its details.
The government has so far been unable to explain why the proposed patchworks at the JKIA that have not included the construction of a new runway will cost nearly the same amount of money neighbouring countries Ethiopia and Rwanda are using to build brand new airports from the ground.